The consumption of electricity in the European region for the period June to August last year increased by 1.5 percent when compared to the same period the other year. This is a significant sign of growth for the sector since the year 2012. This is promising for the electrical sector as well to electricians and aspiring electricians. On another note, the Gross Domestic Product (GDP) of the European region grew by 1.2 percent during the second quarter of 2014. However, on the other hand, the first eight months of last year experienced a decline in electricity consumption.
On the report regarding cross border flow of electricity across EU, it grew by about 10 percent. The combined volume of wholesale power contracts in EU went up by 3.3 percent in the third quarter last year when compared to the same period during the previous year. As per report, the cross border flow of electrical supply and the traded volume of power increased and outnumbered the increase of consumption in electricity. This only means that there has to be a further integration as well as improvement in the liquidity of the electricity markets across Europe.
There is an existing market coupling in the seventeen markets situated in the North West European area. However, even if this strategy exists, there is still a significant difference in the average price of wholesale electricity in that region. The lowest price is attributed to the French market which is only at 29 Euro/ MWh. On the other hand, in the countries Lithuania and Latvia, the average price stands at 57 Euro/MWh. The significant difference in prices is seen to have come from local factors which include the changes in the generation of power mixes or interconnection capacity.
In the second half of 2014, the prices on natural gas in the United Kingdom significantly fell to 15 Euro/MWh. This was a four year low. Later that year, the prices on natural gas rebounded. By September, the power prices once again increased. The market share of coal in UK has greatly expanded. This just shows that there is a great flexibility in the generation fleet.